Factors affecting the development of the Vietnamese derivative securities market

Tran Quoc Thinh,Ly Hoang Anh,Nguyen Ngoc Khanh Dung

doi:10.21511/imfi.17(4).2020.03

Abstract

In the context of integration, the capital market has important implications for strengthening economic resources for development. This becomes even more important as the derivative securities market has recently emerged in some countries. It is an opportunity for countries to approach many capital sources, especially foreign capital. The objective of this paper is to identify factors affecting the development of Vietnamese derivative financial markets. The paper uses exploratory factor analysis and ordinary least squares to test the model. A survey sample includes 152 managers and experts of Vietnamese derivative securities companies in 2019. The results show that the International integration factor has the same direction, while the Legal environment factor has an adverse impact on the development of the Vietnamese derivative securities market. Therefore, Vietnamese regulatory bodies should amend some laws to create stability in the legal corridor, and state management agencies in the country need the orientation and the international integration strategy to attract financial resources for the development of Vietnam’s economy.

Highlights

Raising capital is an important problem for countries in the process of economic development
The objective of this paper is to identify factors affecting the development of Vietnamese derivative financial markets
The results show that the International integration factor has the same direction, while the Legal environment factor has an adverse impact on the development of the Vietnamese derivative securities market

Summary

Introduction

Raising capital is an important problem for countries in the process of economic development. Developing countries need capital resources to serve financial development, infrastructure, education, training, health, etc. This is one of the core elements of financial development and growth. Cyuzuzo (2018) argued that the mobilization of capital from financial markets has contributed to the growth of the national economy. Countries need to develop their securities markets to attract capital from investors. Gupta and Mokshmar (2018b) believed that there was a relationship between capital mobilization and derivative markets. Developing a derivative market will attract economic resources from investors. This is an opportunity to increase the capital source for the nation’s economic development

Objectives

Discussion

Conclusion